Third of small firms fear

ONE in three small firms in the north west which are shut due to the coronavirus pandemic are unsure whether they will ever reopen.

The figures were revealed by the Federation of Small Businesses (FSB), who surveyed 5,400 business owners in the region.

Their survey found that almost half (44 per cent) of north west firms have been forced to close since the beginning of the Covid-19 outbreak.

And of that figure, 38pc are unsure whether they will ever resume trading.

The survey also showed that 74pc of small business employers across the north west have furloughed staff to aid the survival of their business.

And 70pc of these businesses say the ability to partially furlough workers would benefit them.

A total of 41pc of employers are considering, or have already made, redundancies, the survey found.

On Tuesday, Chancellor Rishi Sunak announced that the furlough scheme will continue until October.

The support has been welcomed by members of the business community, but leaders warn that ‘the crucial support that’s on offer needs to be kept under review.’

FSB’s north west regional chairman Chris Manka said: “The impact of the coronavirus pandemic has been felt right across the small business community.

“Government has stepped up with a huge range of support for millions of small businesses and sole traders, from income support schemes, to cash grants, to help with accessing finance and business rates breaks.

“Policymakers now need to realise the economy will not go from zero to a hundred overnight once we’re into the recovery phase. The crucial support that’s on offer needs to be kept under review, and adapted to reflect the new normal as we chart a course back to economic recovery.

“Take the Job Retention Scheme. A big chunk of small business owners who have saved jobs by making use of it say that the ability to furlough staff on a part-time basis – allowing them to work according to client demand and gradually come back into the workplace, whilst being supported by the scheme the rest of the time – will not only be helpful, it will save firms.

“Part-time furloughing is not nice to have, it’s fundamental to saving jobs.”

The survey also found that among small firms that pay business rates, 15pc say their landlord charges them for rent and business rates in a single recurring bill. It means they risk missing out on cash grants linked to the payment of rates.

The government has now launched a discretionary fund aimed at helping those faced with this situation.

However, 81pc of those surveyed do not know what share of their single charge is accounted for by rates, making it difficult for them to establish whether they are entitled to the fund.

A total of 8pc of business owners have applied for Universal Credit, with close to a third (29pc) having their applications rejected.

Even among those that have had applications approved, only 13pc have received their advanced payment.